Daily Market Analysis by Exness - USD/JPY

30.07.2014 7:07 USDJPY
USDJPY: growth after publication of the volume of industrial production in Japan

Buy on a level breakthrough of 102.15 with 102.75 target. Stop loss = 101.65.

Reason for the trading strategy.

The Japanese currency remains under pressure after publication of data on the volume of industrial production in Japan. The indicator reflecting the situation in the real sector of the national economy fell in June by 3.3% (m/m) after an increase by 0.7% (m/m) in the previous month. Market participants do not rule out the possibility of expanding the quantitative easing program by the Bank of Japan to support economic growth in the country.

USDJPY, Daily

31.07.2014 7:07 USDJPY
USDJPY: growth against the reduction of the QE3 program in the US

Buy on rebound from 102.68 level with 104.00 target. Stop loss = 102.00.

Reason for the trading strategy.

Yesterday, the US Federal Reserve retained its benchmark interest rate unchanged in the 0% to 0.25% per annum range, and the QE3 asset purchases program was reduced from 35 billion to 25 billion dollars. However, the US Federal Reserve stressed that interest rates will remain low for a long time after completion of the QE3 program. According to the American regulator, against a background of continuing problems in the housing market, it is currently appropriate to retain an extremely loose monetary policy. After ending overpurchasing, we expect a growth of the USDJPY pair.

USDJPY, H4